Equifax

Finance Blog

Stay financially savvy with the Equifax Advisor.

Sign up for our FREE Monthly Email Newsletter

 

Thank you for signing up for the FREE Equifax monthly newsletter

In addition to keeping in the financial know, you may be interested in checking your credit score and report.

Understand your credit. Help protect your identity.

Equifax Complete™ Premier Plan

  • Know What May Influence Your Credit Score and Be Alerted of Changes
    Credit score monitoring with custom alerts
    Important Disclosure: The Equifax credit score and 3-Bureau credit scores are based on an Equifax credit score model and are not the same scores used by 3rd parties to assess your creditworthiness.¹
  • Help Protect Your Identity
    Automatic fraud alerts encourages lenders to take extra steps to verify your identity²
  • Lock Your Credit
    The ability to lock and unlock your Equifax Credit Report³
Save 75% your first 30 days with the purchase of Equifax Complete™ Premier

$4.95 for the first 30 days, then $19.95 per month thereafter. You may cancel at any time; however, we do not provide partial month refunds.4

¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.

³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.

4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.

Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.

Reverse Mortgages: What’s New

Written by Ilyce Glink on October 15, 2010 in Real Estate  |   3 comments

Reverse Mortgages: What’s New If you’re a senior age 62 or older, you’ve probably heard the term “reverse mortgage.” You may even have seen an ad featuring celebrated actor James Garner speaking on behalf of Financial Freedom, a reverse mortgage lender. Simply, reverse mortgages allow…

Reverse mortgagesReverse Mortgages: What’s New

If you’re a senior age 62 or older, you’ve probably heard the term “reverse mortgage.” You may even have seen an ad featuring celebrated actor James Garner speaking on behalf of Financial Freedom, a reverse mortgage lender.

Simply, reverse mortgages allow seniors to tap into their home equity and not pay anything back until they either sell the house or are no longer living in it as a full-time resident.

To tap the equity, of course, you must have it to begin with, and that is a major problem these days for seniors living in areas where home values have plummeted in the last three to five years. Reverse mortgages work best when you no longer have a mortgage against the property, although some reverse mortgages can work if you have just a very small mortgage remaining.

Depending on where interest rates are and how old you are, you may be able to borrow up to 70 percent of your equity. You can receive your funds as either a lump sum or a monthly annuity, or you can, in some cases, open up your reverse mortgage as a home equity line of credit and draw down funds as you need them.

All of this sounds great, but reverse mortgages have come under fire recently because of confusing disclosure statements and high fees.

In August, the Federal Reserve Board proposed enhanced consumer protections and disclosures for home mortgage transactions, including reverse mortgages. The latest proposal would:

  • Improve the timing, content, and format of the disclosures consumers receive about reverse mortgages
  • Impose rules for reverse mortgage advertising so that ads will contain accurate and balanced information
  • Prohibit certain unfair practices in the sale of financial products with reverse mortgages, including “conditioning a reverse mortgage on the consumer’s purchase of another financial or insurance product”
  • Improve disclosures that explain the borrower’s right to rescind certain mortgage transactions
  • Require that consumers receive counseling about reverse mortgages before a creditor can impose nonrefundable fees or close the loan

The biggest problem with reverse mortgages at the moment is that consumers don’t always realize they are taking out a loan, against which interest is charged. Some consumers seem to believe that they are simply taking out a modified, interest-free home equity line of credit that never has to be repaid.

Of course, that’s not true. Not only are reverse mortgages home loans that do indeed have to be repaid at some future point in time, but they are expensive loans at that.

The term “reverse mortgage” refers to the fact that the borrower doesn’t have to repay the mortgage until after moving out of the home, which is the opposite of what typically happens with a regular mortgage.

No matter how long you live, as long as you live in the property against which the reverse mortgage is secured, you won’t have to pay back more than the house is worth. But that means there may not be any equity in the home to leave to your children as an inheritance—which is a problem for some seniors.

Having better disclosures that tell the full story to seniors should help bring an end to misguided notions about what reverse mortgages actually do, and how costly they are.

But what I’d really like is for the Federal Reserve to require that costs and fees be explicitly detailed to seniors well before they commit to the loan, so shopping around for the best reverse mortgage deal will become a lot easier and more understandable.

The comment period for these proposed rules ends ninety days after publication of the proposal in the Federal Register, and then the rules will be formalized. I’ll continue to update the blog as more information becomes available.

Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and at the Home Equity blog for CBS MoneyWatch.

READ MORE:

Want to Buy a New House? Beware Developers Hawking Empty Subdivisions
Is It Worth It to Appeal Your Property Taxes?
Should I Refinance Now?
Renting vs. Owning Property: How to Make the Call?

3 comments

  1. Admin says:

    Thanks for the nice article. I totally agree with your point that many senior citizens opt for reverse mortgages these days but unfortunately not everyone is aware of the dangers that are associated with this type of mortgage. Compared to traditional loans, reverse mortgages are more pricey and it can use up some of the equity of a home. The homeowner is thus left with few or little assets. In addition, reverse mortgages can make a person lose his/her home. So I would advise people to do some research on reverse mortgages and consult an expert if necessary. For more information, visit http://www.revealty.com.

  2. Editor, Equifax Personal Finance Blog says:

    Ilyce,

    Thanks for the "Heads Up" on this. I also do some Notary Work and often am asked to Notarize a reverse mortgage so it's good to have an idea of what is going on.

    Bob

    from Bob on ActiveRain http://activerain.com/blogsview/1927854/what-s-new-with-reverse-mortgages

  3. aldrin james says:

    My Mom should read this post. She is waiting for this for over a month now and I am so sure that she will be so happy to read and know this article.

    Reverse Mortgages Canada


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Real Estate Archive